As expiry approaches, the Bears are getting a look in. Below 5115 weakness starts.
As discussed yesterday, we saw "Range-bound Bullish undertones" with the Nifty trading in a very small range of 40 points and closing with a minor gain of 6 points. On such low ranged days, none of our trading plans get triggered usually, and we are kept watching from the sidelines. For today, Nifty trading below 5115 will be the first indication of weakness, and would get confirmed with a breach of 5090. Nifty could grind in a small range if the Bears are not able to breach 5090.
1) The Elder Ray readings : Bull Power reduces from +106 to +41 Bear Power rises from +17 to +2, indicating that some weakness is entering into the Nifty and the Bears are just on the verge of regaining safety. For today, the Bulls need to overcome 5145 to retain their upwards momentum, whereas the Bears need to breach the Nifty below 5090 to recover their lost grounds.
2) The Nifty continues to close above all its key EMAs, which is a bullish indication. It is also closing above its 50 and 100 DMAs.
3) The stochastics are just out of the overbought zone and are pointing downwards, indicating that a downfall is likely now.
4) In the above chart, the volumes have decreased with the Nifty going nowhere. The MACD is in the positive, but is looking to flatten out, which indicates the creeping weakness. The ADX is also suggesting a rise in momentum for the Bears and a fall in momentum for the Bulls. The Parabolic SAR holds onto its buy signal, but it will change if the Nifty breaches 5090.
5) Considering the above, our trading plan for the day is as under.
a) Around 5145, we will open fresh short positions with a SL of 5180 and a target of 5100. We will add to these short positions only below 5090.
b) Around 5100, we will open fresh long positions with a SL of 5090 and a target of 5140. We will add to these long positions only above 5185.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, we saw "Range-bound Bullish undertones" with the Nifty trading in a very small range of 40 points and closing with a minor gain of 6 points. On such low ranged days, none of our trading plans get triggered usually, and we are kept watching from the sidelines. For today, Nifty trading below 5115 will be the first indication of weakness, and would get confirmed with a breach of 5090. Nifty could grind in a small range if the Bears are not able to breach 5090.
1) The Elder Ray readings : Bull Power reduces from +106 to +41 Bear Power rises from +17 to +2, indicating that some weakness is entering into the Nifty and the Bears are just on the verge of regaining safety. For today, the Bulls need to overcome 5145 to retain their upwards momentum, whereas the Bears need to breach the Nifty below 5090 to recover their lost grounds.
2) The Nifty continues to close above all its key EMAs, which is a bullish indication. It is also closing above its 50 and 100 DMAs.
3) The stochastics are just out of the overbought zone and are pointing downwards, indicating that a downfall is likely now.
4) In the above chart, the volumes have decreased with the Nifty going nowhere. The MACD is in the positive, but is looking to flatten out, which indicates the creeping weakness. The ADX is also suggesting a rise in momentum for the Bears and a fall in momentum for the Bulls. The Parabolic SAR holds onto its buy signal, but it will change if the Nifty breaches 5090.
5) Considering the above, our trading plan for the day is as under.
a) Around 5145, we will open fresh short positions with a SL of 5180 and a target of 5100. We will add to these short positions only below 5090.
b) Around 5100, we will open fresh long positions with a SL of 5090 and a target of 5140. We will add to these long positions only above 5185.
Happy Trading !!!
For cash market recommendations see our Daily Pre Market calls on NSE
Great analysis... thanx
ReplyDelete